How it Works

Selling the Invoices

1

Companies that want to fund their short-term operations can submit their invoices to 0KM-f and sell them on its electronic market. Companies will show a sell price that may be matched by a buy price from investors, through a continuous auction mechanism.

2

If the deal is closed, the sellers/ companies will transfer to the buyers / investors, the invoices at the agreed price (a percentage of the invoice face value).

3

Companies will receive the agreed amount of money from the sale of the invoice. After the deal is closed, all the risks are borne by the buyers / investors (the purchase is with no-recourse clause).

4

Investors willing to buy invoices, will show a buy price during the auction. The agreed price will be transferred to the seller / company when the deal is closed.

After the Sale

1

The debtor /client is notified that the invoice has been sold to the buyer / investor. The details where to pay the invoice at the expiry are also provided.

2

The buyer / investor is exposed to the risk that the debtor / client does not pay the invoice at the expiry. 0KM-F offers tools to monitor the expiry schedule and the payment of the invoices.

3

At the expiry, the debtor / client pays the invoice as instructed after the sale of the invoice.

4

The buyer / investor will receive the full amount of the invoice. The difference between this amount and the paid price to the seller / company, is the return on the investment.